Updates and Procedures for Customs Exemptions on the Import of Ice cream milk powder

According to what was published on March 27th 2014 in the Hebrew website “Port2Port”, a decision was made by Israeli Minister of Economy and Customs Authority, to exempt all tariffs on imported milk powder used in ice cream manufacturing only, and not in other industries. This decision will apply automatically to Palestinian importers, as confirmed by Israeli Customs Authority, whereby importers of ice cream milk powder will be exempted from all taxes. This exemption is general, and not related to the quota issue.

It is worth mentioning that the percentage imposed on milk powder ranged between 162% and 212% (according to the fat rate). Yet, these percentages will still apply to the milk powder used for other purposes.

In order to obtain the tax exemption, a special application form, a production license which proves it belongs to an ice cream producer, and an auditor's certificate stating the percentage of production during previous years, should be submitted.

This decision will affect the cost of ice cream manufacturing, and possibly the price of ice cream products on the consumer.